Introduction

A Mutual Recognition Agreement (MRA) is an agreement between two national accounting institutes/bodies that provides a window to its members to practice accounting profession in both countries without having the need to undergo the entire process of qualification. This is more like a having a dual degree thereby allowing one to have an international presence of their accreditation. It gives wings to dreams of business expansion across countries to truly become an MNC. 

A prime example of such a MRA is one between the AICPA and Canada CPA wherein member CPAs of both these institutes can freely carry out professional activities in each other’s country. This MRA between all Canadian CPA bodies and all state boards of AICPA came into effect in January, 2018. 

Both AICPA and Canada CPA have signed MRA/MOUs with many similar institutes across the world. Below is a quick snapshot on the countries these two have agreements with:

US CPAs seeking Canada CPA membership

MRA between US CPA & Canada CPA allows a US CPA-holder below rights and benefits:

• Use the CPA designation in Canada

• be registered in Canada

• provide audit services to Canadian firms

• provide other services or licensure

• Eligibility Requirements

Only a member with good standing with a US State Board along with below-mentioned requirements would be eligible to obtain a Canadian CPA degree:

• Possess at least 150 CPE credits incl. a baccalaureate or higher degree

• Must have passed all 4 US CPA exams.

• Must have at least 30 months of relevant professional experience (2 yrs of post qualification exp is eligible)

Further, US CPAs who are or have been Canadian residents must meet below two additional requirements:

• Obtain a university degree having attended curriculum in-person on a full-time basis 

• Have at least one year of practical working experience in the field of accounting in USA

Exclusion notes: US CPA members who have obtained this credential on the basis of an MRA/MOU between AICPA and other institutes are not eligible for this facility.

• Process for General Membership

A US CPA member seeking Canada CPA designation must comply with below steps to obtain this credential:

• Register with an apt Candain regional/provincial body (click here for a list)

• Apply by filing the International Candidate Application Form with a regional/provincial body

• Obtain a letter from US State Board confirming your good standing directly to the Canadian CPA body

• Provide a government ID proof of your legal name

• Provide a detailed resume mentioning your past work experience

• Pay appropriate fees determined by respective regional/provincial CPA body

• Adhere to any additional requirements which may be warranted by the regional/provincial CPA body

Note: A candidate must also complete a 20-hour CPA Reciprocity Professional Development (CPARPD) course within a period of two-years from the date of admission as a member. This course seeks to provide insights into Canadian tax, law and ethics.

• Process for Canada CPA License

Below conditions must be met before one is eligible to practice license in Canada:

• Meet additional Canadian CPA requirements incl. a minimum of 1,250 chargeable hours in assurance services wherein at least 625 hrs is for auditing historical financial information. This auditing experience can also include past experience of practicing in USA, subject to it being obtained within a period of 5 years from your application to Canada CPA

• Adhere to any addl. experience requirements specific to the respective provincial/regional CPA body

• Complete the CPA Reciprocity Education and Examination (CPARE) program